NeuSoft(SH:600718)2017-03-30 16:00Financial Performance - In 2016, the company achieved a net profit of RMB 1,263,505,260, with a profit distribution plan proposing a cash dividend of RMB 1.00 per 10 shares, totaling RMB 124,319,775[5]. - The company's operating revenue for 2016 was RMB 7,734,848,084, a slight decrease of 0.22% compared to RMB 7,751,691,683 in 2015[22]. - The net profit attributable to shareholders increased significantly by 379.08% from RMB 386,357,188 in 2015 to RMB 1,850,977,215 in 2016[22]. - The basic earnings per share rose to RMB 1.51, reflecting a 380.30% increase from RMB 0.31 in the previous year[24]. - The company's total assets decreased by 3.00% to RMB 11,749,641,407 at the end of 2016, compared to RMB 12,112,720,527 at the end of 2015[22]. - The net assets attributable to shareholders increased by 26.92% to RMB 7,711,935,832 at the end of 2016, up from RMB 6,076,042,386 in 2015[22]. - The company reported a net cash flow from operating activities of RMB 147,252,418, a decrease of 48.77% from RMB 287,460,671 in 2015[22]. - The weighted average return on equity increased to 26.76%, up by 19.83 percentage points from 6.93% in 2015[24]. Revenue and Market Segments - The company achieved a revenue of CNY 6.13 billion from its self-developed software and services, accounting for 79.3% of total revenue[33]. - The company served over 2,000 hospital clients, covering more than 400 tertiary hospitals and 4.6 billion patient visits nationwide[52]. - International business revenue was RMB 161,790 million, a year-on-year decrease of 11.31%, accounting for 20.92% of total revenue[50]. - Revenue from the healthcare and social security sector reached CNY 1,408,800,791, with a gross margin of 34.46%, showing a year-on-year increase of 3.62%[77]. - The intelligent automotive interconnection sector generated CNY 1,094,144,900 in revenue, but the gross margin decreased by 1.24% to 20.28%[77]. - The smart city sector reported revenue of CNY 2,284,897,222, with a gross margin of 28.34%, reflecting a year-on-year increase of 2.41%[77]. Investments and R&D - Research and development expenditure increased by 14.24% to CNY 879,694,179 from CNY 770,065,886 year-on-year[75]. - The total R&D expenditure for the period was CNY 879,694,179, representing a year-on-year increase of 14.24% and accounting for 11.37% of operating revenue, up 1.44% year-on-year[88]. - The number of R&D personnel reached 13,866, making up 76.81% of the total workforce, with capitalized R&D expenditures constituting 12.37% of total R&D spending[87]. - The company has applied for a total of 921 patents, with 235 granted, and registered 835 software copyrights, demonstrating a strong commitment to intellectual property protection[72]. Strategic Initiatives and Market Position - The company has implemented a proactive market competition strategy, strengthening its market presence in healthcare, intelligent automotive connectivity, and smart city sectors[48]. - The company is focused on innovation and globalization, driving business development through proprietary intellectual property[37]. - The company has established a marketing and service network across over 60 cities in China and subsidiaries in Japan, Europe, and the United States to support overseas market expansion[37]. - The company has been recognized multiple times in global rankings, including being listed among the "Top 100 Global Software Companies" by PwC[36]. Challenges and Risks - The company faces macroeconomic risks due to a prolonged global economic downturn and increasing protectionism, which may impact IT demand and information consumption[124]. - Approximately 20% of the company's revenue is exposed to exchange rate fluctuations, necessitating ongoing analysis and appropriate hedging strategies to mitigate risks[125]. Corporate Governance and Shareholder Information - The company appointed Lixin Certified Public Accountants (Special General Partnership) as the financial audit institution for the year 2016, with an audit fee of 1.4 million RMB (excluding tax) for the annual report[135]. - The internal control audit for the financial report of 2016 was also conducted by Lixin Certified Public Accountants, with a fee of 450,000 RMB (excluding tax)[136]. - The company has a cash dividend policy prioritizing cash distributions over stock dividends, aiming for at least 30% of the average distributable profit over the last three years[129]. - The total number of ordinary shares after the issuance of 991,500 reserved restricted shares and the repurchase of 370,500 restricted shares is 1,243,197,745 shares[170]. - The company has no significant impact on earnings per share and net asset per share due to the changes in share capital[170]. Social Responsibility and Community Engagement - The company has invested 48.3 million RMB in poverty alleviation efforts, including 2.08 million RMB specifically for supporting impoverished students[162]. - A total of 50 impoverished students received financial assistance from the company as part of its educational poverty alleviation initiatives[162]. - The company has been recognized as the "Most Socially Responsible Enterprise" by the Education Bureau of Xiuyan County for its continuous support of local education[162].